THE FEDERAL RESERVE INDICATED A POSSIBLE RATE CUT if trade tensions escalate and begin to hamper the economy. Jerome Powell stressed, “We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion.” Delivery of July West Texas Intermediate rose 0.54 percent reversing four straight sessions of declines. Heightened global trade concerns and volatile markets caused crude to tumble as investors fear demand could be impacted. The 10-year note further gained 5.8 basis points. S&P +2.14%, DOW +2.06, NASDAQ +2.65%.
|Key Gainers and Losers||Volume Leaders|
|CVS Health Corp. 4.3% 3/25/2028
Citigroup Inc. 3.2% 10/21/2026
|Industry Returns Tracker|
|New Issues||New Issues [Continued]|
1. Public Service Enterprise Group (USD) 2.875% 6/15/2024 (06/03/2019): 750MM Senior Unsecured Notes, Price at Issuance 99.953, Yielding 2.88%.
2. Home Depot Inc. (USD) 2.95% 6/15/2029 (06/03/2019): 1000MM Senior Unsecured Notes, Price at Issuance 99.426, Yielding 3.02%.
|Top Widening Credit Default Swaps (CDS)||Top Narrowing Credit Default Swaps (CDS)|
|Hertz Corp. (5Y Sen USD XR14)
Hovnanian Enterprises Inc. (5Y Sen USD MR14)
|Cable & Wireless Communication (5Y Sen USD CR14)
SuperValu Inc. (5Y Sen USD MR14)
Loans and Credit Market OverviewSYNDICATED LOANS HIGHLIGHTS:
Deals recently freed for secondary trading, notable secondary activity:
- Packers Holdings, Charles Schwab Corp., Tundra Energy Marketing , Louis Dreyfus Corp.
- TED spread held below 16 bp (basis points), as of 06/04/19
- Net positive capital flows into high-yield ETFs & mutual funds
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